Climate Change With A Comprehensiveu.s Cap And Trade System Essay

1140 Words May 5th, 2016 5 Pages
Global warming has become an increasingly popular topic for discussion among economists because of the human activity that is contributing to the rising pollution in today’s society. Economists such as William Nordhaus in his article, “After Kyoto: Alternative Mechanism to Control Global Warming,” have argued that a carbon tax is the most efficient form of action to reduce carbon emissions. On the other hand, other economists such as Robert Stavins argues in his article, “Addressing Climate Change with a Comprehensive U.S Cap and Trade System,” that a cap and trade system should be implemented instead of a carbon tax. While both of these market instruments have their strengths and weaknesses, another popular approach is combining these two market instruments into a hybrid approach with a cap and trade system complemented with a price floor or ceiling or maybe even both. I will analyze all three approaches and talk about each market instrument’s strengths and weaknesses. Afterwards, I will conclude which market instrument is the most efficient to slow down global warming and what actions need to be taken to execute such results. First, the question of why the issue of global warming is important can be found in research, “In response to mounting scientific evidence that human activities are contributing significantly to global climate change, decision makers are devoting considerable attention to public policies to reduce greenhouse gas emissions and thereby prevent or…

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